The Cabinet Committee on Economic Affairs (CCEA) in India has given the green light to extend the scope of norms for mandatory packaging in jute materials.
The norms will be implemented under the Jute Packaging Material (JPM) Act 1987, mandating 100% of the food grains and 20% of sugar to be packed in diversified jute bags.
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The government agency will initially focus on placing 10% of the indents of jute bags for food grains packaging through a reverse auction on the National Public Procurement Portal, Government e-Marketplace (GeM).
According to CCEA, the decision will drive diversification of the jute industry and contribute to the development of the sector.
The Indian Government currently contributes more than Rs6.5bn ($91.98m) on annual purchases of jute bags for food grain packaging.
Jute Corporation of India (JCI) is offering a Rs1bn ($14.15m) grant to support jute farmers over the next two years, ensuring price stabilisation in the sector.
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By GlobalDataThe National Jute Board has partnered with the National Institute of Design to unveil a Jute Design Cell in Gandhinagar, Gujarat, India, to support the diversification of the sector.
The government and state authorities across the North Eastern region have taken measures to promote Jute Geotextiles and Agro-Textiles. The Ministry of Road Transport and Ministry of Water Resources have also helped achieve these plans.
